Cardless banking

Cash without a card

Some banks let you withdraw money at an Automatic Teller Machine (ATM) without a card. You may also be able to pay for goods and services with your phone.

This new technology can be easy and convenient but it pays to know it works.

Getting cash from an ATM without a card

Smart tip

Protect your temporary codes with the same diligence you would for your standard PIN.

To withdraw money this way you usually need to log in to your banking app on your smartphone and select the option to receive a cash code. You then receive a unique code by text message, and may also receive a Personal Identification Number (PIN) by separate text message if required by your bank. Then, you simply find an appropriate ATM and use the code(s) to collect your cash.

You only have a short period of time to get to an ATM before the code expires. The code will also expire as soon as you withdraw your money.

If you don't have a banking app you may be able to use this system by calling your bank and identifying yourself. You can also use it to give cash to someone else such as a family member or close friend, by giving them the code(s).

Tap your phone to pay

Smart tip

Take some time to understand how new technology works. Ask your bank to explain anything that is not clear.

This method of payment uses similar technology to that used in contactless cards, allowing you to tap your phone instead of your card. It works for smartphones that have a computer chip, called a Near Fields Communication (NFC) chip, embedded in them, allowing them to work in the same way contactless cards do.

If you don't have a phone with an NFC chip, your bank may be able to provide you with a tag to stick on your phone that performs the same function. They may charge you a small fee for the tag.

Pay to a mobile phone number

Some banks let you pay someone using only their mobile phone number. When you send a payment to someone they receive a text message that includes a code and instructions on how to retrieve the money.

The recipient needs to follow the instructions, enter their account details and the funds will then be deposited into their bank account.

It is also possible to send payment to an email address or Facebook contact in the same way. When making payments this way always check the recipient's details carefully and ask your bank if you're unsure how to make a transaction.

Technology is changing at a rapid pace. You can make payments and manage your money on the go, with just a smartphone. Make sure you understand exactly how it works before enjoying the freedom this technology gives you.


Last updated: 29 Jan 2015